NAIROBI: Kenya's central bank held its benchmark lending rate at 11.50 percent, saying the exchange rate had stabilised and the current account deficit had narrowed, the bank's Monetary Policy Committee (MPC) said on Tuesday.
The decision was in line with a Reuters poll of 10 analysts in which eight had expected no change in the rate.
The bank raised the lending rate by 300 basis points earlier this year in part to support the weakening shilling.
As well as noting that the shilling had stabilised, the committee said in a statement that lower oil prices and a slowdown in consumer demand had helped narrow the currency account deficit.
The trade gap has put pressure on the currency.
"The committee concluded that the monetary policy measures in place are appropriate to maintain market stability and anchor inflation expectations," the committee said.
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